ISLAMABAD: Federal Minister for Finance Miftah Ismail on Tuesday said that the government provided relief to all segments of society in the budget for fiscal year 2018-19, adding that no additional taxes were levied which is unprecedented in the history of Pakistan.
Winding up budget debate in the National Assembly, the minister remarked that the government had given relief to people from the low-income background by exempting their incomes from tax. He categorically said that the government did not impose Rs 30 billion taxes on the petroleum products nor did it intend to do so in future. He clarified that enhancing the upper limit of petroleum levy was a constitutional requirement. He assured that adjustment in the upper limit of petroleum development levy will not increase prices of the petroleum products.
Miftah said that the government had announced an export package which resulted in enhancing the exports of the country, adding the exports witnessed an increase of 24 percent in March 2018 and 18 percent in April 2018. He said that another export package was also on cards, adding that Rs 24 billion have been set aside in the budget for it.
Explaining issues related to exports, the minister said that the sector suffered due to recession in the international market, internal security problems and energy crisis during the last some years. He rejected the misperception and claims of some members of the House that the government at one side had withdrawn taxes of about Rs 184 billion but imposed other taxes of Rs 400 billion.
Miftah said the allocation for Benazir Income Support Program (BISP) has been enhanced three times while an amount of Rs 10 billion has been proposed for Pakistan Bait-ul-Mal for the next fiscal year.
He said the government has increased power subsidy to Rs 150 billion, adding that it has added 12,230 megawatt of power to the national grid which has greatly helped bridge the demand and supply gap. He said efforts are being made to contain the circular debt in order to avoid outages in the summer season.
About the steps taken for the growth of agriculture sector, the minister said the government has further reduced sales tax to 2 percent on fertilizers. He said the farmers who will pay their outstanding bills in the first quarter of next fiscal year will be given exemption of 20 per cent. This will benefit the farmers’ community to the tune of Rs 6 billion, he added.
The minister announced to enhance by 50 percent the conveyance allowance of government employees of grade 1-16 who sit for late hours. He said it is the priority of the government to provide relief to the low-income groups and for this purpose launch of small housing schemes will be facilitated and encouraged.
He said that non-filers of tax returns will not be able to purchase property but the limit for this purpose has been enhanced from Rs 4 million to Rs 5 million. He also announced to exempt the matches industry from sales tax.
The minister expressed confidence that the next year’s budget will give further impetus to the economy and will boost economic activities in the country. He said the government has spent resources on the welfare of people and today the economy stands at the record growth level.
Miftah Ismail said that the Upper House has furnished 157 recommendations for incorporation in the budget. He said of these, 108 were related to the federal development budget which have been referred to the Planning Commission. He said the remaining 49 recommendations were pertaining to the finance ministry. He said of these, 42 have been adopted fully or partially.
Responding to various objections related to the presentation of the budget by the incumbent government, he said it was the duty of the parliament to fix the direction of national priorities for next financial year. The fiscal budget was an important part of the legislation process which must have been done by the elected parliament, he added.
The minister expressed gratitude to all members of the assembly who fully participated in the budget debate, particularly the opposition members who played a positive role despite specific reservations.
Miftah congratulated chief ministers of Sindh and Baluchistan for presenting the budget of their respective provinces but questioned why did Sindh present budget for only three months.
Published in Daily Times, May 16th 2018.
